Contractor issues profit warning and announces second round of job cuts

Contractor Renew Holdings has issued a profit warning and announced a second round of job cuts.

In a trading update this week the firm said results in the six months to 31 March 2009 would be “satisfactory” but full-year targets would be missed.

As a result, it will reduce capacity by 23% in its specialist building division following a “challenging” two months. The division shrank by 14% late last year and the latest cut will bring the total job losses to about 180.

The redundancies will be phased through the second half of this year and result in a one-off charge of £2.5m. It is thought the move will be followed by more job cuts in other divisions.